Texas County beef producers would gain a subsidy under a provision tucked away in a wide-ranging economic package that is sitting on the governor’s desk.
The bill establishes the “Qualified Beef Tax Credit Act,” which authorizes a tax credit for each sale of a qualifying animal. From Jan. 1, 2009 – Dec. 31, 2016, the tax credit is equal to 10 cents per pound above 450 pounds when qualified beef are sold and 10 cents per pound if the weight of the animal at a subsequent sale is greater than the weight at the first sale.
The tax credit must be claimed in the year in which the qualifying sale occurs. Any unused portion can be carried back three years, used forward in five years or sold to someone else.
The annual cap on the tax credits issued is $10 million; the cumulative cap is $30 million.
The provision is included in legislation that contains an odd combination of issues, ranging from ticket scalping to biodiesel tax credits. In all, the package is worth about $100 million in tax credits.
It is not known whether the governor will sign the bill into law or veto it and call a special session to address economic development matters.